AGENCE FRANCE TRESOR is tasked with managing the government debt and cash positions under the most secure conditions in the interest of the taxpayer.
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AFT’s supervisory duties  

Goal: maintain risk management quality standards and minimise incidents.

The internal audit and risk management system must comply with market standards with regard to negotiable debt, cash, derivatives and trades on behalf of third parties. The system should spot problems and incidents that could disrupt debt and cash transactions as early as possible, mitigate them and assess their impact. The system’s scope is also determined by the diversity of AFT’s transactions, the payment circuits used and the international nature of its counterparties.

Several sets of indicators have been developed to assess whether or not this goal is achieved.

Quality indicators relating to AFT’s audit system

  • First indicator: lists the number of incidents or breaches of AFT’s internal rules (risk limits, authorisations or internal controls breached).
  • Second indicator: assessment by an external auditor (KPMG for 2016) based on a verification of AFT’s procedures, given its activities and related risks. The Order of 3 November 2014 relating to internal control in the banking sector has been the benchmark for AFT since 2015.

Indicators tracking debt and cash transaction execution incidents

  • First indicator tracks the number of incidents that have an adverse impact on the Banque de France account balance.
  • Second indicator tracks the number of incidents that have a zero or a positive impact on the account balance.
  • Third indicator tracks the number of incidents relating to the systems involved in managing transaction, compliance incidents, or other types of incident such as non-compliance with internal operating procedures.